describe the Economic initiatives that are taken by the Indian Government to revive Indian Economy. Mention the facts with the help of data also.
Answers
Answer:
1) Restructure PSBs in line with the Private Sector Banks
2) Treat 42 food parks and rural markets as priority sector investments
3) Build 100,000 water storage reservoirs to recharge aquifers annually
4) Implement a long term energy security plan
5) Simplify GST and reduce 4 tax slabs to 2 slabs
Explanation:
1)Restructure PSBs in line with the Private Sector Banks
The banking sector reforms that started in 2015 is the single largest economic reform that is being done since independence. These reforms even when it happened in the UK and the US in the eighties took a decade to give results. The Indian scene is slightly more complicated with the Public Sector Banks PSBs having the role and responsibility to provide banking to the millions of people at the bottom of the pyramid.
2) Treat 42 food parks and rural markets as priority sector investments
The Modi Government has sanctioned 42 food parks which could revive both the agriculture sector as well as bring down food inflation significantly. Each project has come up on 50 to 100 acre land and was supposed to support 25 to 30 food processing and packaging units generating a revenue of at least Rs 500 crore per food park, generating work for 5000 employees and helping 25,000 farmers process their products.
3) Build 100,000 water storage reservoirs to recharge aquifers annually
India has become a water deficient nation since 2010 when the per capita water availability dropped to below 1700 cubic meter per person. As per a WB report 29% of the water bodies were in dire straits then. The situation has deteriorated during the last decade with per capita water availability dropping to 1400 cubic metres. Despite spending over 50% of the substantial MNREGA funds on water bodies and a ..
4) Implement a long term energy security plan
India needs a long term energy security plan that ensures smooth transition from polluting fossil fuels to non polluting gas and renewable energy smoothly. It needs to consolidate all its oil companies into integrated players with production, refining and marketing capability. The Modi Government has taken the first step by merging ONGC with HP but more needs to be done. It needs manufacturing and mining initiatives for energy storage cells, rare earths. This needs a long term research and planning with futuristic tie ups and careful investment.
5) Simplify GST and reduce 4 tax slabs to 2 slabs
Last but not the least is to bite the bullet on GST reforms. The GST in its present form is highly complicated. It has two many clauses and sub clauses, too many amendments and too many exemptions. GST is a consumption tax and it should be levied like one. Today it is a complex amalgamation of at least seven taxes. It is based on the architecture of the defunct central excise act 1950 with the clauses of sales tax to service tax all factored in. It is not business friendly in the current form and I have discussed it in detail in my book India Emerging : From Policy Paralysis to Hyper Economics published in April 2019 by Bloomsbury.